AutomAIT

Mandate 02 · Buy-side

Add-on

Continuous coverage of the full add-on set, established before the platform is bought and held through the hold period.


The position

Inside a defined thesis and geography, the number of companies of the right size, in the right sub-sector, with an owner of the right age is countable. Often it is a two-figure number, and it does not grow during the hold period.

Every sponsor pursuing that thesis is working the same list, and so is every strategic. The discount the model assumed was structural is usually a function of nobody having called yet.

How it runs

The set is mapped in full before the platform closes, and coverage begins there rather than at the point the integration team asks for a pipeline. The first add-on generally comes out of the platform's own network; the ones after it come from people that network does not reach.

We sequence the set rather than working it in the order it replies, and we hold the conversations that are two years from anything through the quarters when they produce nothing.

What it holds

Add-ons that clear near the multiple the programme was underwritten on, and a pipeline that is already warm at the point the platform is ready for the second acquisition.

One sponsor per thesis. We do not run the same set for a second buyer.


PerspectiveThe Buy-and-Build SpreadWritten for sponsors underwriting a buy-and-build.

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